New Delhi, Apr 8: There will be no more foreign direct investment (FDI) in cigarette manufacturing, the government announced on Thursday, Apr 8.
“FDI will be prohibited in the manufacture of cigarettes, whether it is for domestic consumption...or for exports," Home Minister P Chidambaram said.
Speaking to reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA), the Home Minister also informed that the FDI ban in cigarette manufacturing will be applicable in the special economic zones too.
Currently, 100 per cent FDI is permitted in cigarette manufacturing.
The existing norms require industrial licence along with an approval from Foreign Investment Promotion Board (FIPB) on the proposed FDI.